November 13, 2015
According to a new report from technology research organisation Gartner, 6.4 billion connected things will be in use worldwide in 2016, up around a third (30 percent) from 2015, and will reach 20.8 billion by 2020. The study claims that in 2016, 5.5 million new things will become connected each day. Gartner estimates that the Internet of Things (IoT) will support total services spending globally of around US$235 billion in 2016, up nearly a quarter (22 percent) from 2015. Although the report claims that the technology will make significant inroads in consumer markets, services are dominated by the professional category defined by Gartner (in which businesses contract with external providers in order to design, install and operate IoT systems). However connectivity services (through communications service providers) and consumer services will grow at a faster pace, according to the report.
“IoT services are the real driver of value in IoT, and increasing attention is being focused on new services by end-user organisations and vendors,” said Jim Tully of Gartner. “Aside from connected cars, consumer uses will continue to account for the greatest number of connected things, while enterprise will account for the largest spending,” said Mr. Tully. Gartner estimates that 4 billion connected things will be in use in the consumer sector in 2016, and will reach 13.5 billion in 2020 (
In the enterprise, Gartner considers two classes of connected things. The first class consists of generic or cross-industry devices that are used in multiple industries, and vertical-specific devices that are found in particular industries. Cross-industry devices include connected light bulbs, HVAC and building management systems that are mainly deployed for purposes of cost saving. The second class includes vertical-specific devices, such as specialised equipment used in hospital operating theatres, tracking devices in container ships, and many others.
“Connected things for specialised use are currently the largest category, however, this is quickly changing with the increased use of generic devices. By 2020, cross-industry devices will dominate the number of connected things used in the enterprise,” said Mr. Tully